Middle East Tensions Weigh on Gold Prices Amid Inflation Concerns

Gold prices dipped slightly on Monday as market uncertainty surrounding the Middle East conflict and inflation concerns lingered.

The spot gold price fell 0.3% to $4,029.84 per ounce by 10:12 a.m EDT (1412 GMT), while U.S gold futures for August delivery dropped 0.5% to $4,029.00.

Marex analyst Edward Meir noted that gold has been stuck in a trading range between $4000 and $4200 for over a month, with support coming from expectations of a resurgence in inflation, particularly after fresh data is released in July.

The market is also closely watching the US Federal Reserve's policy path, as several Fed officials dissented at last week's meeting in favor of a rate hike, citing concerns that delaying higher borrowing costs could keep inflation above 2%.